Quote:
Originally Posted by Drisump
So you pay taxes on the original purchase, pay taxes per year (in addition to user fees) to simply own it and ( and if you were to sell the car for more than original purchase price) pay taxes on capital gains....?
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No, you are not taxed on the sale as a seller. However, the buyer is taxed when he registers the car even if is bought in a private sale.
It is simple - all things you own that can be easily tracked are usually taxed. Of course there is also that pesky thing with the infrastructure that we need to support somehow. A car needs to be driven on a road and a house needs to be at an end of a street with utilities and sewage connected. A diamond is neither traceable easily but also doesn't need that infrastructure.
I am actually okay with CA's registration fee model if it stays at its current level, except for the sales tax on a private sale.
G